Whenever i see stuff like this it makes me want to share. Shame that somebody would do this to a coin. Looks like somebody got overzealous with a propane torch. http://cgi.ebay.com/1927-PEACE-DOLL...13?pt=Coins_US_Individual&hash=item519888f879
Looks more like a chemical burn rather than heat. Heat would most likely have affected the reverse side too.
Hey, at least it wasn't one year later because then I would probably cry. That would be so sad to see a torched '28-P considering the rarity. It hurts even thinking about it :so-sad: